Defining the Value Proposition

Defining the Value Proposition Questions

Who are your customers?

Identify which customers are going to benefit from your product or service. In B2B this may be industry verticals, department or role. For example, our customers can be from any industry but the department we support is normally IT and the end users would be the business and the users of the systems we support.

Which needs are you going to meet?

Value propositions based on needs often appeal to a mix of customers who might defy traditional segmentation. Instead of belonging to a clear demographic category, the company’s customers will be defined by the common need or set of needs they share at a given time. This is a frequent case where the organization wants to use their IT capabilities to help the business grow, there is a need for more capacity in IT support and more capability in the IT products.

What relative price will provide acceptable value for customers and acceptable profitability for the company?

Price is always relative, it is directly related to value and comparative to other vendors.

Some customers are over-served and overpriced by other offerings in the industry. Having a service or product that is “just enough” for the customer’s needs will eliminate unnecessary costs. Conversely, some customers are under-served and underpriced by other offerings in the industry. These customers want an enhanced product or service and are willing to pay a premium for the value it will add to their business.

BAS Technologies have competitively priced models that can scale with the business needs meeting everything from ‘just enough’ through to ‘all bells and whistles’.


We have defined three core entities involved in defining a value proposition, the customer, the needs and the the price and all are important. There is much, much more to defining the detail of a good value proposition but this will get you started.

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